Your supervisor has asked you to do the following calculations; (a) A bank bill with 120 days maturity is issued with a yield of 0.05%pa. Face value is $1,000,000.calculate the issue price of bill. (b) The bill in part (a) is sold after 10 days at a yield of 0.15% pa.calculate the selling price.
Your supervisor has asked you to do the following calculations; (a) A bank bill with 120 days maturity is issued with a yield of 0.05%pa. Face value is $1,000,000.calculate the issue price of bill. (b) The bill in part (a) is sold after 10 days at a yield of 0.15% pa.calculate the selling price.
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 14P
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Your supervisor has asked you to do the following calculations; (a) A bank bill with 120 days maturity is issued with a yield of 0.05%pa. Face value is $1,000,000.calculate the issue price of bill. (b) The bill in part (a) is sold after 10 days at a yield of 0.15% pa.calculate the selling price.
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